Be informed: Don’t let an insurance agent or broker do all the thinking for you. You might not totally understand everything, but the more informed you are the better decisions you can make and the better deal you will be getting.
Be careful whose service you select: Trust the word of neighbors or friends more than catchy phrases in advertisements.
Ask the right questions to select an insurance company:
How long have they been in business?
Is the business specialized in Homeowners insurance or do they have at least one agent mainly dealing with this kind of insurance?
Go on the Internet and see if you can find any reviews or reports about the company. Local forums can be very helpful in finding info about that.
Always check how a specific company settles their claims.
Is the company up to speed with local specialties like lava zones and flood zones?
If applicable: Do they insure Lava zone 1 and 2?
Shop for the best prices: Never just contact one insurance company. If you don’t want to deal with it yourself, contact an insurance broker. Again, you will have to scrutinize the business experience and specialty of the insurance broker. Try to get feedback from customers about his service.
What monthly payment (premium) can you afford? Know that there are two ways to bring your premium down:
Partial payment instead of full reimbursement for loss or damage.
Increasing the deductible (the amount that you have to pay in case of a claim): basically the lower the deductible the higher the premium. So choose your highest affordable deductible.
Study the insurance policies: In that way you know ahead of time what kind of events are covered. Don’t wait until something happens and then you read the policy. Check for any restrictions, exceptions or limitations. Also check to see if it offers a replacement cost coverage or just reimbursement on the basis of “actual cash value” of the property.
Make sure you’ve got the right coverage: Sometimes insurance texts are very dry and abstract. Ask your insurance broker or agent to give you practical examples of everyday situations, so that you can double check that the coverage applies to your specific situation. Don’t be afraid to look stupid. It would be a lot more stupid to lose money because you didn’t ask.
Whatever you sign, make sure you read it carefully: It will not help you later if you have to say, “For some reason I missed that point.” We are talking about a lot of money being at stake, so be thorough.
Keep your coverage up-to-date to avoid underinsuring: An insurance agent with a professional attitude should automatically inform you when your policy needs upgrading.
Home inventory list: This list will make it easier for you to remember what actually was in the house when you file a claim. If you don’t, you will not remember everything. If you have a camera, photograph your inventory. If you have receipts, keep them. All this will help you to prove what you had.
